Alternative investment fundraising in 2025 hits $165.7 billion, driven by a record-breaking year for non-traded BDCs, signalling a shift towards credit-focused, higher-yield opportunities for investors.
Alternative investment fundraising has surged impressively in 2025, reaching approximately $165.7 billion through October, signalling a robust annual run rate near $200 billion. This data, analysed by investment banking firm Robert A. Stanger & Company Inc., highlights the continued growth and evolving trends within the alternative investment space, particularly the remarkable performance of non-traded business development companies (BDCs).
Non-traded BDCs topped fundraising charts this year with an estimated $37.9 billion raised, outpacing other categories such as interval funds at $33.2 billion and various private placements, including infrastructure and private equity offerings, which collectively accounted for about $34.5 billion. This steady momentum affirms the rising investor appetite for yield-oriented and credit-focused strategies within alternatives.
Kevin T. Gannon, chairman of Stanger, observed that non-traded BDCs have not only met but exceeded their 2024 full-year fundraising mark, which was $35 billion. Since the inception of retail-available non-traded BDCs in 2008, nearly $155 billion has been captured by these products. Looking ahead, Gannon projects 2025 fundraising for publicly registered non-traded BDCs to surpass $40 billion, setting yet another record for the sector.
This growth trajectory aligns with findings from other industry analyses. For instance, Blue Vault Partners reported that in the first quarter of 2025 alone, non-traded BDCs raised a record $9.4 billion in public capital, significantly buoyed by major funds like Blackstone’s Private Credit Fund, which has amassed approximately $30 billion since its 2021 launch. By the end of Q1 2025, total assets under management for non-traded BDCs reached $192.8 billion, underscoring the sector’s rapid expansion and appeal to investors seeking higher yields.
Further reinforcing this trend, a mid-year report noted that by July 2025, non-traded BDC fundraising had already reached $26.7 billion, representing a 27.7% year-over-year increase in inflows. This stands alongside robust fundraising in other private placements and interval funds, which also saw elevated capital inflows. The surge reveals a strong market preference for credit-centric, yield-generating alternatives, especially as traditional fixed income instruments have offered comparatively modest returns.
Retail demand for non-traded BDCs has also been notable, with recent data indicating a 121% increase in retail fundraising compared to 2023. These vehicles, designed to provide retail investors access to institutional-quality loans to high-growth companies, typically offer annual returns in the range of 7% to 10%. This has made BDCs an attractive proposition as investors look for higher-yielding options amidst ongoing market volatility.
While the BDC segment thrives, other alternative investment sectors present a contrasting picture. Non-traded real estate investment trusts (REITs), although still significant, have experienced a slight fundraising decline year-over-year, dipping by 2.7% in 2025 despite a recent monthly increase. Redemption rates among non-traded REITs have improved, falling to 2.3% of average aggregate net asset value (NAV) in Q3 from 2.5% the quarter before, and well beneath the typical 5% quarterly redemption caps. Gannon noted that after a challenging period of redemption requests exceeding 4% for seven consecutive quarters beginning in late 2022, the market appears to be stabilizing with easing redemption pressures and steady portfolio performance.
In parallel, non-traded BDCs also reported reduced redemption levels in the third quarter of 2025, with redemptions dropping to 1.8% of average aggregate NAV compared to 2.4% previously. The aggregate NAV of non-traded BDCs surpassed $125 billion during this period, as retail investors increasingly shifted allocations toward credit-focused products with higher yields.
The sector’s landscape remains concentrated, with a few dominant players holding a substantial market share. Industry data reveals that Blackstone, Blue Owl, and Apollo collectively control nearly 70% of public non-traded BDC assets. Meanwhile, private non-traded BDCs have been prolific in launching new funds, averaging around 17 annual launches over the past five years, compared with about four yearly for publicly listed products, highlighting innovation and diversification within the space.
Among the top fundraisers for the year to date, Blackstone leads with $23.4 billion, followed by Cliffwater ($14.1 billion), Kohlberg Kravis Roberts & Co. ($13.9 billion), Ares Management Corporation ($13 billion), and Blue Owl Capital ($12.1 billion), as reported by Robert A. Stanger & Company.
Overall, the alternative investment market in 2025 demonstrates a marked pivot toward credit-oriented, higher-yield products, with non-traded BDCs emerging as the standout growth story. The combination of strong capital formation, stabilizing redemption trends, and prominent industry players pushing the innovation envelope suggests a dynamic and evolving landscape that continues to attract robust investor interest.
- https://altswire.com/alts-fundraising-tops-165-billion-ytd-non-traded-bdcs-set-record-pace/ – Please view link – unable to able to access data
- https://bluevaultpartners.com/nontraded-bdc-fundraising-asset-levels-rise-in-q1-2025/ – In the first quarter of 2025, non-traded business development companies (BDCs) raised a record $9.4 billion in public capital, marking a significant increase from the previous quarter. This surge was driven by major fundraisers like Blackstone’s Private Credit Fund, which has accumulated approximately $30 billion since its 2021 launch. The total assets under management for non-traded BDCs reached $192.8 billion by March 31, 2025, highlighting the sector’s rapid growth and appeal to investors seeking higher yields.
- https://thenewsintel.com/us-alternative-investment-fundraising-surpasses-102-billion-through-july-driven-by-bdcs-and-private-placements/ – By July 2025, alternative investment fundraising in the U.S. had surpassed $102 billion, with non-traded BDCs leading the way by raising $26.7 billion. Other private placements, including infrastructure and private equity offerings, contributed $23.5 billion, while interval funds added $21.6 billion. The strong demand for higher-yielding assets, particularly in the credit-focused strategies, was evident as public non-traded BDC inflows rose 27.7% year-over-year.
- https://www.wealthmanagement.com/alternative-investments/non-traded-bdcs-surpass-20b-in-retail-fundraising – Non-traded BDCs have surpassed $20 billion in retail fundraising for the third consecutive year, with a 121% increase compared to 2023. This growth reflects the increasing investor appetite for yield-oriented investments. BDCs provide loans to high-growth companies across industries and are designed to offer retail investors access to institutional-quality private investments, typically generating annual returns between 7% and 10%.
- https://www.sqxalts.com/news-article/Alts-Fundraising-Hits-766B-Led-by-BDCs – Alternative investment fundraising reached $76.6 billion through August 2024, driven by a surge in non-traded BDCs, while non-traded REITs saw a 52% decline in capital raised. Non-traded BDCs raised $23.7 billion, interval funds $18.3 billion, and other private placements $12.9 billion. The significant increase in non-traded BDC fundraising, up nearly 111% year-over-year, indicates a growing preference for these investment vehicles among investors seeking higher yields.
- https://fuse-research.com/non-traded-bdcs-surge-to-171b-a-top-growth-story-in-alts/ – Non-traded BDCs have experienced rapid growth since 2020, with a 64.3% compound annual growth rate, far outpacing other alternative investment vehicles. Public non-traded BDCs lead in asset growth but are highly concentrated, with Blackstone, Blue Owl, and Apollo holding nearly 70% of assets. Private non-traded BDCs dominate in product launches, averaging 17 per year from 2020 to 2024, compared to four for public BDCs.
- https://www.fa-mag.com/news/2024-investment-in-alternative-assets-totals–37-9-billion-through-april-78206.html – Alternative investment fundraising totaled nearly $37.9 billion through April 2024, led by non-traded BDCs at an estimated $11.6 billion, interval funds at $8.8 billion, and other private placements, including infrastructure and private equity offerings, at $7.5 billion. Non-traded BDC fundraising increased by nearly 169% compared to the same period last year, reflecting strong investor demand for higher-yielding alternatives.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data on alternative investment fundraising up to October 2025, with projections for the full year. Similar reports from Robert A. Stanger & Co. have been published in August and October 2025, indicating that the core information is current. However, the specific figures and projections in this narrative appear to be original, as they are not found in the earlier reports. The inclusion of updated data alongside recycled material suggests a moderate freshness score. ([thenewsintel.com](https://thenewsintel.com/us-alternative-investment-fundraising-surpasses-102-billion-through-july-driven-by-bdcs-and-private-placements/?utm_source=openai))
Quotes check
Score:
9
Notes:
The direct quotes attributed to Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc., are consistent with his previous statements in earlier reports. For instance, in the August 2025 report, Gannon stated, “After a robust first half of the year in alternative investment capital formation, Stanger reiterates our belief that fundraising should top $200 billion for the year once we have completed a full integration of closed-end tender offer funds into our analysis.” ([thenewsintel.com](https://thenewsintel.com/us-alternative-investment-fundraising-surpasses-102-billion-through-july-driven-by-bdcs-and-private-placements/?utm_source=openai)) This suggests that the quotes are reused from prior publications.
Source reliability
Score:
10
Notes:
The narrative originates from AltsWire, a reputable platform that aggregates and reports on alternative investment news. The data cited is sourced from Robert A. Stanger & Co., Inc., a well-established investment banking firm specialising in real estate and alternative investments since 1978. This enhances the credibility of the information presented.
Plausability check
Score:
8
Notes:
The claims regarding the surge in alternative investment fundraising in 2025 align with industry trends and reports from earlier in the year. The projected total of $200 billion in fundraising for the year is consistent with previous forecasts. The narrative also highlights the dominance of non-traded BDCs, which is corroborated by earlier data showing significant year-over-year increases in their fundraising. However, the specific figures and projections presented are not found in earlier reports, suggesting that while the overall narrative is plausible, some details may be speculative.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative provides recent data on alternative investment fundraising up to October 2025, with projections for the full year. While the core information aligns with earlier reports from Robert A. Stanger & Co., Inc., the specific figures and projections appear to be original. The reuse of quotes from previous publications and the inclusion of updated data alongside recycled material suggest a moderate freshness score. The source, AltsWire, is reputable, and the data originates from a credible firm, Robert A. Stanger & Co., Inc. Overall, the narrative is plausible, but some details may be speculative.